(Bloomberg) -- Tata Group has shelved plans for an initial public offering of its entertainment content distribution platform after buying out minority investors, according to people familiar with the matter.
The Indian conglomerate has opted to keep Tata Play Ltd. as a closely held company for longer as it seeks to expand the business ahead of any potential listing in the future, the people said, asking not to be identified because the matter is private. Tata has withdrawn the prospectus it filed with the Securities and Exchange Board of India for a Mumbai IPO, the people said.
The decision to put the IPO plans on hold came after Tata bought out minority investors in the unit, including Singapore’s Temasek Holdings Pte. and the group’s flagship private equity venture Tata Opportunities Fund, the people said. Last year, Tata had been weighing postponing the IPO plans given market conditions, Bloomberg News reported at the time.
Plans for an IPO of Tata Play could still be revived in the future, the people said. Tata may seek a valuation of more than $1 billion for the entertainment business in any potential share sale, they added.
Representatives for Tata Group and Tata Play declined to comment.
Tata Play provides pay television via set-top boxes and over-the-top video streaming through its app, according to the conglomerate’s website. Tata Play was formerly known as Tata Sky.
Tata Play had filed confidentially with India’s capital markets regulator in 2022, becoming the first Indian company to take advantage of the option to file IPO documents without making sensitive information public.
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